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The cheapest business insurance provider is Next, with a MoneyGeek score of 95 out of 100. MoneyGeek scored and ranked insurers based on monthly premiums for general liability, professional liability and workers' compensation insurance.
Next offers the cheapest average general liability insurance for 20-employee LLCs at just $29 per month on average. Next also provides the cheapest professional liability insurance for LLCs with 20 employees and sole proprietors without employees, priced at around $241 per month and $41 per month, respectively. Its competitive pricing makes Next a standout choice for cost-effective business insurance solutions.
Next stands out as the cheapest business insurance provider. Its offerings for general liability coverage for LLCs with 20 employees and professional liability insurance for LLCs and sole proprietors are particularly competitive. Next’s affordability earned it a MoneyGeek score of 95 out of 100. However, Next does not offer the lowest rates for workers' compensation insurance or general liability insurance for sole proprietors.
The table below details the monthly costs of general liability, professional liability, and workers' compensation insurance for all the companies featured on our list. The table also includes MoneyGeek scores for each company representing their overall affordability.
How was this MoneyGeek score calculated?
We found that Next is the most affordable business insurance provider and excels in offering cost-effective general and professional liability insurance. With high affordability scores in these categories, it provides cheap general liability insurance at about $29 monthly for LLCs and $25 for sole proprietors. Next’s professional liability insurance is competitively priced at around $241 and $41 per month for LLCs and sole proprietors, respectively. While its workers' compensation insurance for LLCs is less competitive, at about $200 per month, Next's affordability and top-rated customer satisfaction make it an attractive choice for businesses seeking a balance between cost and quality. However, based on an A- AM Best rating, its financial stability score is lower than some competitors. Despite this, the company's swift quote time of just over a minute further enhances its appeal to businesses.
Thimble ranks as the second-cheapest business insurance provider. The company provides general liability insurance at about $66 monthly for LLCs and a highly competitive $22 for sole proprietors. However, its professional liability insurance is relatively expensive for LLCs at a monthly average of $1,838 but remains cost-effective for sole proprietors at $47. Thimble's workers' compensation insurance for LLCs is reasonably affordable at around $149 monthly. Despite mixed customer satisfaction ratings, Thimble proves its commitment to efficient service with its excellent financial stability record and quick online quote process of just 42 seconds.
The Hartford provides average affordability on its business insurance products. The company offers general liability insurance at about $68 per month for LLCs and $32 for sole proprietors. Its professional liability insurance is around $304 monthly for LLCs and $91 for sole proprietors. Workers' compensation insurance for LLCs is available at $165 per month. Despite the mixed affordability of its coverages, The Hartford boasts high customer satisfaction and financial stability ratings, the latter based on an A+ AM Best rating. The company's quote time of one minute and 30 seconds also underscores its efficient service delivery.
Nationwide offers business insurance products with a particular emphasis on affordability for LLCs. The company provides general liability insurance for LLCs at an average monthly cost of $47 and professional liability insurance at $349. For sole proprietors, Nationwide offers general liability insurance at around $35 per month and professional liability insurance at $121 per month. However, its workers' compensation insurance for LLCs at $195 per month is less competitive. It's also worth noting that the company's quote processing time of two minutes and 45 seconds is the slowest among the insurers we reviewed. Otherwise, Nationwide maintains excellent customer satisfaction and financial stability ratings.
biBERK, a member of the Berkshire Hathaway Insurance Group, provides varying affordability on its business insurance products. While no cost data is available for its general liability insurance for LLCs, it offers this coverage for sole proprietors at a competitive average of $23 per month. Its professional liability insurance is around $495 monthly for LLCs and $134 for sole proprietors. Workers' compensation insurance for LLCs is available at about $181 per month. Despite mixed affordability, biBERK boasts high customer satisfaction and financial stability ratings, the latter based on an A++ AM Best rating. The company's average quote time of one minute and 13 seconds demonstrates its dedication to swift and timely service.
Hiscox’s standout offering is its professional liability insurance for LLCs, available at around $349 per month. However, its general liability insurance is less competitive, with average costs of $126 per month for LLCs and $29 for sole proprietors. Data for workers' compensation insurance for LLCs from Hiscox is not available. Despite the mixed affordability of its offerings, Hiscox holds a solid customer satisfaction rating and a financial stability score based on an A AM Best rating. However, it's worth noting that Hiscox's quote time of one minute and 56 seconds is slower compared to other insurers on our list.
As a small business owner, finding affordable business insurance coverage can be a key part of managing your operational costs. Here are some steps you can take to secure cheap business insurance coverage:
Evaluate the specific risks associated with your business type and industry. This step involves understanding the nature of your operations, the assets you need to protect and the potential liabilities you could face. By identifying these elements, you can pinpoint the types of coverage essential for your business, preventing you from overspending on unnecessary policies.
Take the time to get quotes from multiple insurance providers to compare costs and coverages. Doing this will give you a better understanding of the market and help you find the most cost-effective coverage.
Many insurers offer discounts if you buy multiple types of insurance from them. A business owner's policy, or BOP, is a popular bundle that often includes general liability and property insurance and can be cheaper than buying policies separately.
Implementing a risk management plan can reduce the likelihood of claims, lowering your premiums. A risk management plan could include employee safety training or improving security measures.
As your business grows and changes, so do your insurance needs. Regularly reviewing your coverage ensures you're not over-insured or under-insured.
Remember, the cheapest policy may not always be the best for your business. It's important to balance cost with the quality and extent of coverage to protect your business adequately.
As a business owner, finding affordable business insurance can reduce operational costs, freeing up resources for other critical areas of your business. View the answers to your questions below to better understand where and how you can get cheap business insurance.
About Melissa Wylie
